Amarjit Singh Lamba, New Delhi V. ITO, New Delhi

ITA 3164/DEL/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 4681 (ITAT-DELHI)
• Duration Of Justice: 3 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-09-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Appeal Filed On: 18-05-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANCHAL KHANDELWAL
• Assessee Lawyers: ANIL KUMAR KHANNA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : SMC : NEW DELHI BEFORE SHRI R.S. SYAL, VICE PRESIDENT ITA NO.3164/DEL/2017 ASSESSMENT YEAR : 2012-13 AMARJIT SINGH LAMBA, 664, AGGARWAL CHAMBER-3, VIKAS MARG, SHAKARPUR, NEW DELHI. PAN : AACPL2631E VS. ITO, WARD-16(1), NEW DELHI. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI ANIL KUMAR KHANNA, ADVOCATE RESPONDENT BY: MS ANCHAL KHANDELWAL, SR. DR DATE OF HEARING : 11.09.2017 DATE OF PRONOUNCEMENT: 11.09.2017 ORDER THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER PASSED BY THE CIT(A) ON 20.02.2017 IN RELATION TO ASSESSMENT YEAR 2012-13. 2. THE ONLY ISSUE RAISED IN THIS APPEAL IS AGAIN ST THE CONFIRMATION OF DISALLOWANCE OF RS.1,68,418/-, BEING 20% OF SAMPLI NG EXPENSES INCURRED BY THE ASSESSEE. ITA NO.3164/DEL/2017 2 3. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT T HE ASSESSEE CLAIMED SAMPLING EXPENSES OF RS.8,42,092/-. ON BEING CALLE D UPON TO EXPLAIN THE REASON FOR INCREASE IN SAMPLING EXPENSES FROM THE P REVIOUS YEARS FIGURE OF RS.2,67,327/-, THE ASSESSEE SUBMITTED THAT THERE WA S INCREASE IN THE TURNOVER AS WELL. THE ASSESSING OFFICER REJECTED THE ASSESS EES CONTENTION ON THE GROUND THAT THE TURNOVER INCREASED ONLY BY 110% AS AGAINST THE INCREASE IN SAMPLING EXPENSES TO THE TUNE OF 300%. CONSIDERING THESE FACTS, HE MADE A DISALLOWANCE AT 20% OF SAMPLING EXPENSES, WHICH RES ULTED INTO AN ADDITION OF RS.1,68,418/-. NO RELIEF WAS ALLOWED IN THE FIR ST APPEAL. THE ASSESSEE IS AGGRIEVED AGAINST SUCH SUSTENANCE OF DISALLOWANCE. 4. HAVING HEARD THE RIVAL SUBMISSIONS AND PERUSING THE RELEVANT MATERIAL ON RECORD, IT IS OBSERVED THAT THE ASSESSEES CONTE NTION ABOUT THE ACTUAL INCURRING OF SAMPLING EXPENSES TO THE EXTENT CLAIME D IN THE PROFIT & LOSS ACCOUNT HAS NOT BEEN CONTROVERTED BY THE AUTHORITIE S WITH ANY COGENT MATERIAL. SIMPLY BECAUSE SAMPLING EXPENSES HAVE INC REASED DISPROPORTIONATELY IN RELATION TO THE INCREASE IN T HE TURNOVER, CANNOT BE A REASON IN ITSELF FOR MAKING DISALLOWANCE OF PART OF SAMPLING EXPENSES ON AD HOC BASIS. NO WORTHWHILE REASON HAS BEEN ASSIGNED BY T HE AUTHORITIES FOR ITA NO.3164/DEL/2017 3 MAKING AND SUSTAINING DISALLOWANCE @ 20% ON TOTAL S AMPLING EXPENSES INCURRED BY THE ASSESSEE. I, THEREFORE, SET ASIDE THE IMPUGNED ORDER AND DIRECT GRANTING OF DEDUCTION OF SAMPLING EXPENSES T O THE TUNE OF RS.8,42,092/- AS CLAIMED BY THE ASSESSEE. 5. IN THE RESULT, THE APPEAL FILED BY THE ASS ESSEE IS ALLOWED. THE DECISION WAS PRONOUNCED IN THE OPEN COURT ON 11 TH SEPTEMBER, 2017. SD/- (R.S. SYAL) VICE PR ESIDENT DATED:11 TH SEPTEMBER, 2017. DK COPY FORWARDED TO 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR DY. REGISTRAR, ITAT, NEW DELHI